The Chicago City Council is debating the 2009 budget. Clout Street’s City Hall reporters are there and live-blogging the proceedings. Please scroll down for earlier updates…

Updated at 1:18 p.m.

Aldermen approved the budget 49–1, with Ald. Billy Ocasio (26th) the only vote against.

Updated at 1:07 p.m.

Aldermen appear to be nearing the end of the budget speeches and as expected, Daley’s budget looks like it will pass.

Ald. Virginia Rugai (19th) said this economic situation is far worse for the city budget than other hard times in 1992 and 2001.

“They look so insignificant in comparison to now,” said Rugai, who added that she’s voting for the budget.

Ald. Richard Mell (33rd) said the recession has hit Chicago like a tsunami, but the worst is yet to come.

“My fear is what’s going to happen next year… Next year could be like a meteor hitting Chicago and the world,” Mell said.

He said it is “ludicrous” for state legislators not to back the mayor’s desire for a casino in Chicago. Mell’s son-in-law, Rod Blagojevich, is governor of Illinois.

Updated at 12:53 p.m.

Ald. Brendan Reilly (42nd), a first-termer who has had differences with Daley and did not vote for his budget last year, praised the mayor for his budget proposal. “I strongly believe we are getting the city back on track toward its core mission,” he said.

But, like many of his colleagues, he raised questions about the commercial Dumpster fee, which would go into effect in April. “I think for some, it could be the difference between staying in business or not,” Reilly said.

Read More of Moonwalks Saved; Taxes Raised 49-1 off-site...